DISCOUNT retail chain Ethel Austin is carrying out a é5.6m facelift programme in a bid to revive the fortunes of its 310 stores.

Bosses say their strategy is already paying dividends, with double-digit sales growth in those shops which have already been given a new look.

The north west-based group has so far carried out refurbishments at five of its 30 Greater Manchester stores, and 40 in total.

It aims to complete 150 this year and the entire network by mid-2007.

Ethel Austin, which underwent a é55m management buyout in 2002 and was sold to ABN Amro in 2004, saw sales slump last year in the face of tough competition from the likes of Primark, Matalan and George.

The group made losses of é6.8m on turnover of é180m and was refinanced by its bankers at the beginning of the year in a partial debt-for-equity swap.

A new management team headed by chief executive Simon Cooper, who was recruited from Powerhouse, has launched a three-year programme to restore Ethel Austin's fortunes, and is looking to bounce back into profit next year.

New signs, store layout, lighting, branding and window displays are being rolled out at a cost of around é18,000 per store.

Mr Cooper said: "We want to make the stores much easier for our customers to navigate. We're completely focused on improving the way we trade and the quality of our offer to customers. The positive trading figures show that we are moving in the right direction."

Ethel Austin's headquarters are at Prescot on Merseyside and the chain employs 3,000 people nationwide. It sells clothing, footwear, accessories, gifts, homewares, cosmetics and toiletries.

Mr Cooper said he wants to expand the range of accessories to include items such as jewellery.

Ethel Austin's origins date back to 1934, when its eponymous founder began selling wool from her home in the back streets of Anfield, Liverpool.